Nutrien Ag Solutions cattle saleyard.

After the easter break the uneven balance of yardings and slaughter numbers typically mask underlying sentiment of the market. Uncertainty of diesel costs and wide-ranging side effects of the Iran conflict on global trade, currency and consumer sentiment continue to muddy the waters. At the moment where rain has been received, demand remains strong.

Indicators saw modest declines this week, with feeder heifers down 16¢ to 392¢/kg cwt and the rest of the major cattle indicators down single digits week on week. The Eastern Young Cattle Indicator (EYCI) eased 15¢ to 808¢/kg cwt.  Rain and time off combined to boost demand for cattle in Mount Barker as the Western Young Cattle Indicator jumped 60¢ to 944¢/kg cwt.

Per MLA saleyard reports Dubbo saw more cattle in plainer condition as producers manage stocking rates and move on from lighter cattle and weaners.  Roma saw cattle from the south head north as southern exporter buyers were absent.  Restocker interest in breeders was limited in Gunnedah.  In the interest of cost management and managing pasture for what has been forecast a potentially drier outlook than last season, producers appear to be managing stocking rates.

It was a massive march for beef exports with established markets well and truly covering the declines in volumes to the Middle East.  US, South Korea and Japan were all bigger buyers’ month on month and China after a nonchalant start to the year began to flex its muscle with its biggest month since 2019, as exporters rush to get product in under the quota ceiling.  

The week ahead….

All indications suggest processors will continue to ramp up back up to the recent high tide marks of weekly slaughter when normal work weeks return.

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Data sources: Mecardo, MLA, Bloomberg, DAFF, BOM

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